I want to buy a house now what?

If you want to buy a house there are few things to consider:

 

  •  Do you have good credit?  Your credit score lets creditors know how you handle credit. There are 3 bureaus that keep track of your scores. For more information on the credit scores and how to raise them check out the future blog: Credit: how to make your bad and ugly become good.
  • Is it time? You can always find a good deal but the questions ” Is it time for you”.  If your planning on relocating within  a few years, you won’t have enough time to pay down a mortgage enough to make money on the sale with commissions to matter.
  • Emergency fund. Houses like cars cost money. Not just the sale price, the commissions, closing and monthly payment. You also have to consider the continuing house upkeep. The house can be your biggest investments, but unlike most investments if you don’t keep up the minor repairs then those repairs turn into major costs.
  • Is your income ready? Your gross pay should not be more than 30% for housing. This includes utilities, repairs, mortgage etc.  Banks try to place you in houses that you want to be in not prices you can afford.  A 15 year note is best. When you figure out at www.bankrate.com how much it will be to mortgage a home check out the interest paid between 15 and 30 year note. OUCH.
  • How much down payment do you have? If the answer is none, your not ready. If your really serious about buying a house start a “house saving fund”. Let your family know that this will benefit them too and involve them in ways to save. You should not even look for a house unless you have 15-20% down without touching your emergency money. When you purchase a house there will be things you will need like, window coverings and lawn mower.

 

I love being a homeowner and a landlord.  I taught families how to prepare themselves to become homeowners for over 8 years. Homeownership isn’t for everyone. The joy of homeownership is really worth it but only if done right. So do your homework and think with your head and wallet then you will have a happy heart.